This clinical trial is the first to be registered with Health Canada
after the transition to the new Marihuana for Medical Purposes Regulations (MMPR). This trial will study the dose-response of several varieties of
medical marijuana, consisting of varying degrees of the two most common
active ingredients: delta-9-tetrahydrocannabinol (THC) and cannabidiol
(CBD). It will also explore the short-term safety of vapourized
cannabis as well as to look at functional changes and patient
preference.

Prairie Plant Systems is currently finalizing the agreements with the
two main trial sites. Patient recruitment details will be announced in
the coming weeks.

"With 36 per cent of the patients registered in the former MMAR program
suffering with symptoms of serve arthritis - the largest concentration
of any disease area - we felt there was no option but to continue our
clinical exploration within this important patient group," said Brent
Zettl, President and CEO of Prairie Plant Systems and CanniMed. "Today
we are announcing the launch of our clinical trial program where we
will formally study several varieties of medical marijuana to determine
not only the safety and efficacy of pharmaceutical-grade cannabis, but
also to provide prescribing physicians with the clinical data they are
looking for regarding dosing."

Studies show that the body's own pain-regulating system, (the
endocannabinoid system) has receptors in nervous system tissue, immune
cells, bone and joint tissue. These receptors respond to the
cannabinoids found in medical marijuana, similar to how a key opens a
lock. Medical marijuana research has demonstrated its efficacy at
reducing pain when used by itself or in combination with other
pain-relievers. Many cases of anecdotal evidence have been reported
for arthritis patients who have very successfully used medical
marijuana either in conjunction with traditional therapy or alone.

"Well designed controlled trials are needed to answer many of the claims
made around medical cannabis," says Dr. Mark Ware, executive director
of the Canadian Consortium for the Investigation of Cannabinoids (CCIC)
and a practicing pain physician at the McGill University Health Centre.
"We are continually looking for options to help treat patients who do
not respond to traditional pharmacotherapy. Research of this kind will
start answering some important questions about dose and efficacy, use
of vapourization as a delivery system in clinical practice, and
hopefully will encourage other licensed producers to join in the
research endeavours."

For the 4.6 million Canadians with arthritis, anti-inflammatory and
analgesic medications are the only current options available for
symptom management. While effective for the majority of patients, there
are some cases where current medication just isn't enough to control
the pain and inflammation.

"We know that many people living with arthritis actively seek
alternative options for pain relief," said Joanne Simons, chief mission
officer, The Arthritis Society. "Knowing that, we are very pleased to
see that a clinical trial specific to osteoarthritis of the knee has
been registered with Health Canada. Clinical research is the necessary
first step to get us to where we want to go: more treatment options
available for the arthritis community."

About CanniMed Ltd. and Prairie Plant Systems Inc.

CanniMed Ltd. was the first producer to be licensed under the new Marihuana for Medical Purposes Regulations (MMPR). Our pharmaceutical-grade marijuana is produced under Good
Manufacturing Practices (GMP) regulations, the criteria used to
manufacture all pharmaceuticals in Canada. Our primary focus is patient
safety by strictly following a 281 point quality control process.

CanniMed's parent company, Prairie Plant Systems Inc. was the sole
supplier to Health Canada under the former medical marijuana system for
the last 13 years, and has been producing safe and consistent medical
marijuana for thousands of Canadian patients, with no incident of
diversion.

It is our top priority to lead the new Canadian medical marijuana
industry through our participation in clinical research that will close
the gap between the anecdotal benefit and evidence based medicine in
order to standardize care. Additionally, we are the only Canadian
Licensed Producer who can boast that our pharmaceutical-grade cannabis
has been used in a published clinical trial demonstrating the efficacy
of smoked cannabis for chronic pain.i

Our goal is to provide improved access for Canadians who rely on medical
marijuana through scientific collaborations with external partners
including academic institutions and healthcare professionals.